For AFEX Nigeria, an innovative commodities exchange connecting smallholder farmers to large scale buyers, we were contracted to develop commodities export with an initial focus on ginger and cocoa.
Based on a thorough due diligence to assess credibility, we generated recommendations to adjust the domestic trading template to export and facilitated market introductions to cocoa and spices buyers.
CBI (Centre for the Promotion of Imports from developing countries) is part of the Netherlands Enterprise Agency, funded by the Dutch Ministry of Foreign Affairs.
The mission of CBI is to connect small and medium-sized enterprises (SMEs) in developing countries with the European market and so contribute to sustainable and inclusive economic growth. CBI does this by implementing three to five-year projects in a specific export value chain (VC) in a specific country, focusing on seizing opportunities for exports to Europe and tackling obstacles that hamper or hinder these exports. They are integrated projects, meaning they involve both SME exporters and the enabling environment. CBI develops and implements projects in several consecutive phases.
The objective of the Value Chain Analysis study was to provide answers to the following questions.
The Value Chain Analysis was completed in September 2018, and CBI is currently implementing a specialty coffee program in Rwanda.
The cocoa sector is constantly considering sustainability. Low quality and low yields are a continued focus. Livelihoods, poverty, nutrition and education require attention. Most large chocolate makers have committed to sourcing 100% certified as sustainable in 2020. Many of these end buyers require increased volumes of certified cocoa, while considering their impact targets beyond 2020. All international traders and several local exporters have partnered with these large chocolate brands for sustainable impact.
Through our consulting branch in Nigeria, we support implementers throughout West Africa in designing the project objectives, organization structure, traceability procedures and budget. We are working as a project liaison monitoring progress and impact. We have analysed the project baseline, and are monitoring progress. We identify any project risks that might affect certification status, our outreach targets and our credibility. We look for opportunities to increase impact.
We integrate sustainable impact with commercial objectives. Since 2016, we have supported our clients and partners who have reached out to a significant number of farmers across West Africa, and the numbers and impact keep expanding annually. UTZ certification was obtained, and the field presence is leveraged to increase impact on livelihoods.
TWIN in partnership with Trade Mark East Africa (TMEA) implemented a two year project to strengthen export capabilities of twenty coffee cooperatives in Rwanda and Burundi with a specific focus on supporting cooperatives in: attaining certification, increasing access to Specialty Coffee markets, improving quality of the coffee produced and developing a traceability programme for coffee grown by women.
This export capabilities study identifies actors, value addition, financial analysis, market demands and the enabling environment. We have assessed the export capability of each of twenty coffee cooperatives on a range of indicators, leading to a segmentation. Furthermore, we identified general trends in export opportunities and challenges for both origins.
Even though Burundi has very high quality coffee according to buyers, there are still a lot of basics that need to be covered to be able to market the coffee successfully. Major challenges still exist in logistics, speed, traceability, reliability of pre-shipment samples, communication and marketing.
Rwanda is seen as well-organised and it is a coffee of good quality, there are certain constraints put forward by the buyers with regards to the marketing of the coffee. Flavour is not as unique and other differentiation is needed to compete in the specialty segment. Cooperatives are not always able to provide reliable pre-shipment samples and have limited knowledge of the market and pricing.
